Ethereum Expands DeFi Unit as ETH Faces Mounting Technical Pressure

The Ethereum Foundation has stepped up its involvement in decentralized finance, committing new resources to its DeFipunk initiative even as ETH trades under pressure. The move comes at a time when Ethereum’s price structure remains weak, with sellers in control across several timeframes. While market sentiment leans bearish, the foundation appears focused on shaping the long-term direction of DeFi within its ecosystem.

DeFi Reorganization Announced as Sellers Maintain Control Over ETH

Recent outreach to the Swiss-based organization drew attention to its decision to form a dedicated DeFi unit within the App Relations team. In response, the foundation said the new structure is intended to support the creation of new protocols and guide builders working on decentralized applications.

Sources familiar with the matter, speaking on condition of anonymity, said Charles St. Louis, former CEO of DELV and a governance architect for MakerDAO, has joined as a DeFi Protocol Specialist. Ivan, known as @ivangbi_ and a core contributor at Gearbox Protocol, has taken on the role of DeFi Coordinator. Jason Chaskin continues to lead App Relations & Research under the broader Ecosystem Acceleration unit.

Price action however paints a cautious picture. Ethereum has failed to recover after slipping below its value area high and continues to print lower highs. Analysts note that such a structure often signals fading bullish strength and growing seller control.

ETH currently trades below $1,880 and has been unable to reclaim the $1,900 level. A descending trendline places resistance near $1,920. Recent rebound attempts stalled after touching a low around $1,811, reinforcing the short-term downtrend. Market participants are now watching whether support will hold or if the price drifts toward new yearly lows.

Ethereum Breaks Below POC, Resistance Mounts Near $1,920

Technical observers point to several pressure points shaping current sentiment:

• A break below the point of control (POC) signals the loss of a key fair value zone within the recent trading range.
• Failure to reclaim $1,900 keeps the short-term structure tilted to the downside.
• Resistance clustered near $1,920 aligns with the descending trendline.
• Momentum indicators show weakening buyer participation across multiple timeframes.

Despite these headwinds, the Ethereum Foundation maintains a clear stance on DeFi’s direction. In a public statement, the team said it wants decentralized finance to remain permissionless, censorship-resistant, privacy-focused, self-custodial, and open source. Representatives acknowledged the difficulty of achieving those standards but stressed that their role is to advocate for those principles and support teams building toward them.

St. Louis reinforced that message in a post on X, arguing that DeFipunk is not about recreating traditional finance on blockchain rails. Instead, he described it as finance that would not exist without Ethereum. According to him, authentic DeFi must reflect cypherpunk values, with privacy and user control at its core.

Strategic DeFi Realignment Signals Ethereum’s Long-Term Privacy Focus

A recent blog post outlined areas of interest for the new initiative. Among them are fast on-chain futures designed for hedging and user-controlled AI systems integrated with DeFi protocols. In addition, the initiative is exploring futarchy-based DAOs and private undercollateralized lending models powered by zero-knowledge proofs.

In practical terms, the DeFi unit plans to focus on:

• Supporting protocol security research and improving application design.
• Opening direct communication channels between builders and the foundation.
• Creating public forums for sharing updates, releases, and ecosystem events.
• Coordinating with the redesigned Privacy Cluster, rebuilt in 2025.

Coordination with the Privacy Cluster signals alignment with last year’s broader internal realignment aimed at sharpening the foundation’s resource focus. By integrating DeFi development with privacy research, the organization appears intent on reinforcing Ethereum’s identity as a base layer for censorship-resistant financial tools.

Meanwhile, broader crypto markets remain under strain. Bitcoin has also faced downward pressure, contributing to investor caution. Even with substantial spot ETF exposure across major assets, BTC continues to struggle at key price levels. That environment has added stress to sentiment across the sector.

The Ethereum Foundation’s renewed push into DeFi arrives at a delicate moment. On one side, price weakness and technical breakdowns weigh on short-term confidence. 

And on the other hand, leadership is positioning Ethereum as the foundation for a more independent financial system rooted in privacy and self-custody. Whether market conditions stabilize soon or not, the foundation’s latest move signals a firm commitment to shaping DeFi’s long-term trajectory within the Ethereum ecosystem.